US postpones 50% tariffs against Canada after agreement

US President Donald Trump postponed for three days the introduction of an additional 50% tariff on a number of goods from Canada. The tariffs were supposed to come into effect on August 19, but the White House officially moved their entry into force to August 22. 

Trump stated that the decision was made after reaching an agreement between the US and Canada that still requires final paperwork. Canadian Prime Minister Mark Carney was more cautious in his phrasing: according to him, the sides made significant progress, but the negotiation work is not yet complete.

In a White House proclamation, it is noted that Canada expressed readiness to eliminate trade measures that Washington considers discriminatory against American alcohol, dairy products, automobiles, and auto components. For the duration of the continued negotiations, the US decided to suspend the additional tariffs until 12:01 AM Eastern Time on August 22.

Trump introduced the 50% tariffs by a decision of July 20. They cover specific categories of Canadian imports—from wine and dairy products to automotive goods, cement, and hockey equipment. At the same time, the restrictions do not apply to energy resources, potash fertilizers, some critical minerals, and goods that already fall under other US tariff regimes.

Trump also suggested that, against the backdrop of the agreements, the Keystone XL oil pipeline project may be revived, but he did not specify whether it is part of a trade deal with Canada.

Kurs Ukrayiny previously wrote that Washington had demanded that Ottawa lift a number of trade restrictions before August 19 in order to avoid a new tariff increase. Even earlier, Canada intensified negotiations with the US ahead of the deadline set by Trump.

Based on materials from: White House, Financial Times